🚨 Government Ad Regional Allocation System: Saving Local Broadcasting and Balanced Development Policy

Today Korean Social News | 2025.07.24

📌 Local Broadcasters Demand "30% of Government Ads Should Be Ours"

💬 Local private broadcasting workers are strongly demanding the introduction of a regional allocation system that would assign at least 30% of government advertising to local areas. Local broadcasting is facing a survival crisis due to sharp declines in advertising revenue and uncertainty over the broadcasting advertising bundled sales system. They also proposed reducing advertising agency fees and creating a Local Broadcasting Development Fund. Experts emphasize that the government should recognize local media not as simple businesses but as public assets, and provide real support for balanced regional development and democratic progress. Government advertising is executed on a scale of hundreds of billions of won annually, but most of it is concentrated on central media and online platforms, deepening the isolation of local media.

Summary

• The Government Advertisement Regional Allocation System is a policy that requires allocating a certain percentage of government advertising budget to local media outlets.
• This is being proposed as a policy support measure as local broadcasting faces difficulties from declining advertising revenue and financial hardship.
• It is a key policy to protect local media as public assets and promote balanced regional development.

1️⃣ Definition

Government Advertisement Regional Allocation System means a system that requires allocating a certain percentage of advertising budget executed by the government and public institutions to local media outlets. It involves distributing advertising costs used by the government for public relations and policy guidance with consideration for regional balance.

This is a policy support measure to distribute government advertising concentrated on central media to local areas, promoting management stability of local media and ultimately supporting local residents' right to know and balanced regional development.

💡 Why is this important?

• It guarantees local residents' right to know through management stability of local media.
• It protects regional diversity in a centralized media environment.
• It serves as an important means to achieve balanced regional development and decentralization.
• It contributes to securing media diversity for democratic development.

2️⃣ Current Status and Distribution Structure of Government Advertising

📕 Scale and Characteristics of Government Advertising Market

• Government advertising forms a considerable market. Key current status includes:

  • Annual government advertising budget is estimated at hundreds of billions of won, executed across various media types.
  • Central government departments, local governments, public enterprises, and public institutions serve as major advertisers.
  • Advertising is executed across various media including TV, newspapers, online, and radio, but distribution is uneven.
  • It is used for various purposes including policy promotion, government guidance, and public service announcements.
  • Unlike private advertising, it has the characteristic of needing to consider both public interest and effectiveness.

• The current distribution structure has problems of regional exclusion. Major issues include:

  • Most government advertising is concentrated on central media and nationwide outlets.
  • Regional broadcasting and local newspapers occupy a relatively small portion.
  • The growth of online media has further reduced advertising revenue for traditional local media.
  • The fee structure of advertising agencies works unfavorably for local media.
  • There are no clear regional distribution standards or guidelines, often resulting in arbitrary decisions.

📕 Crisis in Local Broadcasting's Advertising Revenue

• Local broadcasting is experiencing serious declines in advertising revenue. Key realities include:

  • Uncertainty over the broadcasting advertising bundled sales system makes future advertising revenue prospects dim.
  • Private advertising revenue is also continuously declining due to local companies cutting advertising budgets.
  • Intensified competition with online platforms is causing viewer exodus and reduced advertising effectiveness.
  • Regional economic recession after COVID-19 has negatively affected the entire local advertising market.

• This crisis is greatly impacting the public role of local media. Major effects include:

  • Services to local residents are deteriorating due to staff reductions and declining program quality.
  • The ability to discover local issues and conduct in-depth reporting is weakening, reducing the community watchdog function.
  • Creating content that reflects local culture and identity is becoming difficult.
  • Some local broadcasters face closure risks, threatening the entire local media ecosystem.
  • Concerns are growing that local residents' access to information and right to know may be violated.

Major Issues in Government Advertisement Regional Allocation System

1. Setting Allocation Ratios: Discussion on whether the 30% demand is appropriate and if gradual introduction is needed
2. Establishing Distribution Standards: Need for fair standards considering population, regional size, media characteristics, etc.
3. Effectiveness Verification: Seeking balance between government advertising's public purpose and regional support effects
4. Financial Burden: Harmonizing efficiency of government budget distribution with necessity of regional support
5. Institutional Support: Urgency of establishing legal basis and implementation systems

3️⃣ Discussion on Regional Allocation System Introduction and International Cases

✅ Background of Domestic Regional Allocation System Introduction Demands

• Urgent demands from local broadcasting are leading to policy discussions. Major demands include:

  • Demanding introduction of mandatory allocation system assigning at least 30% of total government advertising to local broadcasting.
  • Proposing to reduce advertising agency fees from current 15% to 5-10% for local media only.
  • Arguing for establishment of Local Broadcasting Development Fund to build continuous and stable support system.
  • Urging preparation of supplementary measures in case the broadcasting advertising bundled sales system is abolished.

• Logic regarding policy legitimacy is also being presented. Major arguments include:

  • Recognition change is needed that local media are not simple businesses but public assets of local communities.
  • They argue this is a policy that aligns with constitutionally guaranteed principles of decentralization and balanced development.
  • They emphasize preventing exclusion of local residents in communication with citizens, which is the ultimate purpose of government advertising.
  • They present the public value that securing local media diversity is essential for democratic development.

✅ International Local Media Support Policies

• Developed countries support local media through various methods. Major cases include:

  • France operates a system that mandatorily allocates a certain percentage of government advertising to local media.
  • Germany implements public broadcasting support for local broadcasting and government-level local media development policies.
  • The UK has a system that uses part of public broadcasting license fees for local broadcasting support.
  • Canada protects local media through tax benefits and direct subsidies for local media.

• These countries' policy philosophies and implications exist. Major characteristics include:

  • They recognize local media as core infrastructure for democracy and local community development.
  • They naturally accept the government's active role in correcting market failures.
  • They take comprehensive approaches that promote qualitative development of local media beyond simple economic support.
  • They secure political neutrality and fairness through transparent standards and procedures.
  • They operate systems that regularly evaluate and improve social effects through local media support.

4️⃣ Related Terms Explanation

🔎 Broadcasting Advertising Bundled Sales System

• The broadcasting advertising bundled sales system is a special sales method for terrestrial broadcasting advertising.
  • The broadcasting advertising bundled sales system refers to a system that bundles and sells advertising from terrestrial broadcasters (KBS, MBC, SBS) and regional private broadcasters. When advertisers purchase nationwide broadcasting advertising, ads are automatically broadcast on local stations, allowing local broadcasters to earn advertising revenue.
  • Key characteristics of the bundled sales system include: First, advertisers can achieve nationwide broadcasting with one contract, which is convenient. Second, local broadcasters can earn advertising revenue without separate sales efforts. Third, total advertising costs are distributed according to agreements between broadcasters. Fourth, it serves as an important revenue source for local broadcasting.
  • However, as the possibility of abolishing this system has recently been raised, the local broadcasting industry is greatly concerned. If the system is abolished, local broadcasters would have to attract advertising independently, which is realistically very difficult, making alternative measures urgently needed.

🔎 Balanced Regional Development

• Balanced regional development is one of the core values of national development.
  • Balanced regional development refers to the national policy goal of resolving economic, social, and cultural gaps between the Seoul metropolitan area and non-metropolitan areas, and between urban and rural areas, allowing all regions to develop by utilizing their unique characteristics. It pursues balance in overall quality of life beyond simply resolving economic gaps.
  • Major areas of balanced regional development include: First, resolving gaps in regional income and employment opportunities from an economic perspective. Second, alleviating regional gaps in education, medical, and cultural infrastructure from a social perspective. Third, strengthening decentralization and regional autonomy from a political perspective. Fourth, protecting regional unique identity and diversity from a cultural perspective.
  • Local media support is one of the important means of balanced regional development. This is because local media serve roles in representing regional voices, discovering regional issues, and preserving and developing regional culture. Therefore, the government advertisement regional allocation system can be understood in this context.

🔎 Public Assets

• Public assets refer to assets that exist for the benefit of society as a whole.
  • Public assets refer to assets that should be utilized for the public interest of society as a whole rather than the private interests of individuals or specific groups. This includes not only tangible assets owned by the state or local governments, but also intangible assets that provide important value to society as a whole.
  • Characteristics of public assets include: First, they should aim to enhance the welfare of society as a whole. Second, they should exclude monopolistic use by specific classes or groups and guarantee fair access. Third, they should deliver their value to future generations through sustainable management and operation. Fourth, they should be managed according to transparent and democratic procedures.
  • The perspective of viewing local media as public assets is a recently spreading recognition. Since local media perform public functions such as democratic development of local communities, preservation of local culture, and guaranteeing local residents' right to know, they should be protected and fostered as social assets beyond simple profit-making enterprises. From this perspective, government support and protection are justified.

5️⃣ Frequently Asked Questions (FAQ)

Q: Won't advertising effectiveness decrease if more government advertising is allocated to local areas?

A: This depends on how we view the purpose of government advertising. If the main purpose of government advertising is not simple commercial effects but communication with citizens and policy guidance, increasing regional allocation might actually be more effective. First, local media often have higher familiarity and trust among local residents. Policy promotion through local media that understand regional characteristics well can be more effective. Second, by promoting policies evenly nationwide, information can be delivered to all citizens without excluding any regions. Third, region-specific promotion becomes possible, enhancing policy effectiveness. Fourth, international cases show that government communication through local media had effects of increasing overall policy acceptance. Of course, it's important to establish systems that accurately measure and evaluate advertising effects for continuous improvement.

Q: Won't the government end up controlling local media if the regional allocation system is introduced?

A: This is a very important concern that must be considered when designing the system. However, if appropriate institutional measures are prepared, such concerns can be sufficiently addressed. First, transparent and objective distribution standards should be clearly defined by law to prevent arbitrary distribution. It's desirable to use quantifiable standards such as population, regional size, and media reach. Second, advertising content should be limited to pure policy promotion or public service announcements, excluding specific political messages or government promotion. Third, independent review bodies or monitoring systems should be established to oversee political neutrality. Fourth, separate measures should be prepared to guarantee editorial independence of local media. Fifth, institutional supplements should be introduced to prevent political abuse by referring to advanced foreign cases. Ultimately, if the system's purpose and operation methods are transparent and fair, we can expect effects that actually strengthen the independence of local media.